The Economics of Lenders

Erik Kobayashi-Solomon

January 21, 2015

Financing companies are not ?normal? companies and their assets are not ?normal? assets. A financing company?s main asset is the cash it loans to customers. Unlike a manufacturer?s assets?a metal-bending machine or a lathe, for instance?a financing company?s assets do not stay put at its headquarters, but instead get transferred to the control of its …

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